In many past issues of the Tax Reduction Letter we’ve talked about how to get the greatest tax benefits from your S corporation. But what happens if you decide to close down your business? What then? Can your S corporation deduct business expenses that you paid after you officially dissolved the corporation? We’ll answer this and other important questions when you read … [Read more...]
Capital Gains
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Defining “real estate investor” and “real estate dealer”
Here’s a good news double header… Good news #1: You can be both a real estate investor and a real estate dealer with respect to your real estate portfolio. This puts you where you want to be. In control. Good news #2: By knowing just a few rules about dealer/investor classifications, you can dramatically increase your net worth. Want to find out more? Read my new article … [Read more...]
How capital gains can destroy your 199A 20-percent deduction
Are you eligible for a Section 199A 20-percent tax deduction? When you start to answer the question, don’t forget about your capital gains. Why? Because they add to your taxable income which is the key to determining your qualification for some, all, or none of the 199A deduction. Don’t miss this opportunity to find out if a hefty tax deduction is coming your way. Read … [Read more...]
Did goodwill take a hit under tax reform?
The Tax Reform and Jobs Act changed the tax treatment of certain self-created intangible property. This leads to an important question. Does tax reform affect goodwill created or acquired in a business? Some say that the value of goodwill, when a business is sold, could now be considered ordinary income. If so, this could create a huge tax-hit for S and C corporation owners … [Read more...]
Tax Reform: Wow, New 20 Percent Deduction for Business Income
Here’s some really good news and it’s a big deal… Section 199A of the new tax code lets you claim a deduction against your IRS 1040 taxable income of up to 20% of your qualified business income. Yes. These new rules can really put big money in your pocket. Which is why I urge you to read my new article titled Tax Tips: Tax Reform: Wow, New 20 Percent Deduction for Business … [Read more...]